Antwerp, Belgium - 6 March 2020
Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) announces it has entered into an agreement for the acquisition through resale of one VLCC newbuilding contract.
Currently completing construction at the DSME shipyard in South Korea this modern eco-VLCC is being acquired for USD 93millionand will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment System.
The vessel is due for delivery early in thefirst quarter of 2021 and is an identical sister ship of the 3 VLCCs acquired last month.
Hugo de Stoop, CEO said: “Management and the board continue to believe that thefundamentals of the large tanker market remain constructive despite substantial headwinds surrounding economic activity linked to the Corona Virus. We believe and hope these will be temporary albeit likely to impact tanker markets until the end of the summer 2020.”
Acquisition rationale and funding
This transaction is consistent with our core company objectives with the vessel being anex-yard resale, thus not adding to existing vessel supply.
Euronav will meet the financing of this acquisition with existing borrowing facilities and debt capacity. The payment profile for this transaction means thatthe largest portion of the instalments will be made on ship delivery.
Balance sheet debt leverage will continue to remainappropriate in order to allow the Company to retain its strength and flexibility.
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The Company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia.
Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners.
Euronav’s owned and operated fleet consists of 2 ULCCs, 42 VLCCs, 27 Suezmaxes (of which 2 owned in 50%-50%joint venture)and 2 FSO vessels (both owned in 50%-50% joint venture).
Euronav NV press release